Pakistan Fertilizer Sector sees leaser sale in Oct 2022

According to provisional fertilizer offtake data of Oct’22, urea offtake declined by 16% YoY to 429k tons against 514k tons in SPLY. Urea sales of EFERT, FFC and FFBL (combined) and FATIMA plummeted by 40%, 6% and 5% YoY, arriving at 97k tons, 233k tons and 75k tons, respectively. On an MoM basis, urea offtake decreased by 15% owing to weak agronomics post-floods. Therefore, sales of EFERT, FATIMA and FFC and FFBL combined reduced by 41%, 4% and 2% MoM, respectively. On a cumulative basis, urea sales witnessed an uptick of 2% YoY during 10MCY22, clocking in at 5,199k tons. The offtake of FATIMA depicted a growth of 21% YoY to 803k tons in 10MCY22. Meanwhile, the urea sales of FFC and FFBL combined showcased a drop of 2% YoY, settling at 2,395k tons, while EFERT’s sales slumped by 15% during 10MCY22 to 1,619k tons.

DAP offtake declines by 82% YoY in Oct’22

DAP offtake depicted a fall of 82% YoY to 63k tons during Oct’22 owed higher DAP prices. On MoM basis, the DAP sales witnessed an uptick of 1%. Albeit, DAP offtake during 10MCY22 plunged by 48% YoY at 803k tons. On a company-specific basis, DAP sales of FFC and FFBL settled at 39k tons in Oct’22, registering a drastic fall of 77% YoY, while climbing up by 58% MoM. Hence, FFC and FFBL’s DAP offtake during 10MCY22 clocked in at 476k tons, down by 40% YoY. Whereas, EFERT’s DAP sales during Oct’22 reduced by 71% YoY but remained stable on MoM basis to 19k tons. Consequently, EFERT’s DAP offtake in 10MCY22 arrived at 182k tons, down by 31% YoY.

Inventory position

By the end of Oct’22, the closing inventory of urea producers stood at 357k tons versus 294k tons in Sep’22. Furthermore, the inventory position of DAP is 505k tons as of Oct’22.

Courtesy- AHL Research

 

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